0:00:02 > 0:00:04Hello. There are many different ways to go about property developing.
0:00:04 > 0:00:06There isn't a one size fits all approach.
0:00:06 > 0:00:10Yeah. In the end, though, it's up to you, but if you do it right,
0:00:10 > 0:00:11you could do very well out of it.
0:00:11 > 0:00:16Yes, and you might find a bargain down at your local property auction.
0:00:16 > 0:00:20Yes, how about buying your next home under the hammer?
0:00:45 > 0:00:47Well, the variety of choices can be overwhelming
0:00:47 > 0:00:49in the world of property development.
0:00:49 > 0:00:52Yes, sometimes it's decisions, decisions, decisions,
0:00:52 > 0:00:54and the stakes are high.
0:00:54 > 0:00:57Yes, but did today's buyers choose wisely?
0:00:57 > 0:00:58Let's find out.
0:01:00 > 0:01:03I'm in Worcestershire to see a charming cottage
0:01:03 > 0:01:05with some unwanted guests.
0:01:05 > 0:01:06Listen.
0:01:06 > 0:01:08HE CHOMPS
0:01:09 > 0:01:12There are more strange noises at this house in Croydon.
0:01:12 > 0:01:14Have a little look over there.
0:01:17 > 0:01:18That's the railway line.
0:01:20 > 0:01:24And I can hear the sound of a wallpaper stripper in this four-storey house
0:01:24 > 0:01:25in Birmingham.
0:01:25 > 0:01:29It's everywhere. There's woodchip wallpaper everywhere.
0:01:31 > 0:01:33All these properties have been sold at auction,
0:01:33 > 0:01:38and we'll find out who bought them and what they paid when they went under the hammer.
0:01:38 > 0:01:39Yours, sir.
0:01:44 > 0:01:47This is the hamlet of Holy Cross Green in Worcestershire,
0:01:47 > 0:01:49and isn't it lovely?
0:01:49 > 0:01:52It's one of the five hamlets that make up the village of Clent.
0:01:52 > 0:01:56There are two churches of note in the parish - St Leonard's,
0:01:56 > 0:02:01where there has been a church since 1199 in the centre of the village,
0:02:01 > 0:02:04and St Wulstan and the Oswald's,
0:02:04 > 0:02:07which was a former malthouse before being offered to the Catholic Church
0:02:07 > 0:02:09in 1926.
0:02:11 > 0:02:12Well, commuter distance from Birmingham,
0:02:12 > 0:02:15with easy access to the motorway network,
0:02:15 > 0:02:21is this really charming little village, and a property that I think, mm, yep,
0:02:21 > 0:02:26you're going to love. It is a two-bedroomed mid-terraced.
0:02:26 > 0:02:27Let's call it a cottage.
0:02:27 > 0:02:30£110,000 was the guide price.
0:02:30 > 0:02:31Let's have a look.
0:02:35 > 0:02:36HE CHUCKLES
0:02:36 > 0:02:41So, straight off the road and the pavement into your front room.
0:02:41 > 0:02:43So you would definitely want, like they've got here,
0:02:43 > 0:02:46a nice thick curtain to keep out the noise and the cold.
0:02:46 > 0:02:49But you step into this room and the first thing you notice is that.
0:02:49 > 0:02:51Wow!
0:02:51 > 0:02:53That is amazing.
0:02:53 > 0:02:55What a feature that fireplace is.
0:02:55 > 0:02:58Truly outstanding.
0:02:58 > 0:03:03It sort of sets the scene, though, for a house that, even at first glance,
0:03:03 > 0:03:05is a bit of a time warp, isn't it?
0:03:05 > 0:03:09Look at the wooden bits and pieces around the place,
0:03:09 > 0:03:14look at the carpets, look at the walls and the painting,
0:03:14 > 0:03:16and yeah, wow!
0:03:16 > 0:03:21Step through here, you've got stairs up to the bedrooms, into the rear
0:03:21 > 0:03:23part of the house, where the kitchen is.
0:03:23 > 0:03:24And again,
0:03:24 > 0:03:28yeah, a Belfast sink - you could have predicted that.
0:03:29 > 0:03:31Wow!
0:03:31 > 0:03:35Another fireplace, not in as nice a condition as the one in there, but...
0:03:37 > 0:03:39what a lovely feature, again.
0:03:40 > 0:03:45The problem is going to be how to retain the charm of this place while
0:03:45 > 0:03:50bringing in stuff that you really need in a modern house,
0:03:50 > 0:03:56such as...damp-proof course, such as modern electrics, such as...
0:03:59 > 0:04:00..central heating.
0:04:01 > 0:04:03It's going to be a challenge. You know what?
0:04:03 > 0:04:05It's going to be worth it. It's a charming little house.
0:04:05 > 0:04:07It's going to need some thought, though.
0:04:09 > 0:04:10My first thought is,
0:04:10 > 0:04:14you'll need to dig out and refloor with a full damp-proof course here,
0:04:14 > 0:04:17as it's been tiled straight on top of the earth,
0:04:17 > 0:04:21which is typical of Victorian homes, especially in the kitchen and pantry.
0:04:23 > 0:04:25So, upstairs, and to the front of the property,
0:04:25 > 0:04:28a really nice-sized double bedroom.
0:04:28 > 0:04:31Towards the back of the property, a bit of a compromise.
0:04:31 > 0:04:33You've got a bathroom and loo, which is great.
0:04:33 > 0:04:36It's upstairs, which is definitely good news, but it's been created,
0:04:36 > 0:04:40I think, from a room which would've been the same size as the one at the
0:04:40 > 0:04:44front, so the second bedroom, actually, is quite small.
0:04:44 > 0:04:45When I say "quite small", it's really small.
0:04:45 > 0:04:48You could just about get a single bed in here, so a child's bedroom,
0:04:48 > 0:04:51perhaps. Intrinsically, you could probably live with that.
0:04:51 > 0:04:52What's more serious...
0:04:54 > 0:04:55..is that.
0:04:55 > 0:04:59Look very carefully, or more importantly, listen.
0:05:00 > 0:05:02HE CHOMPS
0:05:04 > 0:05:06That is the sound of chomping.
0:05:07 > 0:05:09These floorboards...
0:05:11 > 0:05:15..have got woodworm. That's the telltale signs, all those little holes.
0:05:15 > 0:05:18So, that definitely needs to be sorted out
0:05:18 > 0:05:21cos they are hungry little devils.
0:05:21 > 0:05:24You could easily get full up with all the problems in this house,
0:05:24 > 0:05:28so whoever bought this would really need to make sure they don't bite off
0:05:28 > 0:05:30more than they can chew.
0:05:32 > 0:05:36# Get your teeth round this, open wide
0:05:36 > 0:05:38# Eyes bigger than your belly tonight
0:05:38 > 0:05:43# So put 'em up, put 'em up, take a bite... #
0:05:45 > 0:05:49Let's hope the outside will be a little easier to stomach.
0:05:56 > 0:05:59It doesn't look too bad, but it does appear to be shared access,
0:05:59 > 0:06:02and that's something worth checking out.
0:06:04 > 0:06:07Charming though this house is, it's not without its issues,
0:06:07 > 0:06:10and even at that guide price of 110,000,
0:06:10 > 0:06:12it could quickly become a money pit.
0:06:15 > 0:06:17What does a local estate agent think,
0:06:17 > 0:06:21and how does she think it could do on the local market?
0:06:25 > 0:06:27The market is very good at the moment.
0:06:27 > 0:06:31The supply is down, demand is high.
0:06:31 > 0:06:34So therefore, any property that's coming onto the local market
0:06:34 > 0:06:39should be, you know, getting a good price, especially in this location.
0:06:39 > 0:06:41If I was buying this property,
0:06:41 > 0:06:45I would try and find somehow to keep that original stove.
0:06:45 > 0:06:48I think that is fascinating,
0:06:48 > 0:06:52but if they want a more modern, contemporary look,
0:06:52 > 0:06:55then you could actually put sort of nice wall radiators,
0:06:55 > 0:06:58make more of the space,
0:06:58 > 0:07:00and putting in fitted wardrobes, again,
0:07:00 > 0:07:02gains you more space upstairs.
0:07:04 > 0:07:06Assuming this work is carried out,
0:07:06 > 0:07:09the agent thinks this could net a rental figure of between
0:07:09 > 0:07:12£695 and £725
0:07:12 > 0:07:15per calendar month, but what about the resale value?
0:07:16 > 0:07:22I think an owner could expect to receive between £185,000 and £195,000
0:07:22 > 0:07:25in this current market.
0:07:25 > 0:07:27One of the great things you occasionally find when you're looking round
0:07:27 > 0:07:30houses is some artefacts from years gone by.
0:07:30 > 0:07:34And interestingly enough, the whole of the front page is largely about
0:07:34 > 0:07:36things for sale by auction.
0:07:36 > 0:07:39Some things never change, eh?
0:07:39 > 0:07:40It's a charming house.
0:07:40 > 0:07:43I'm sure somebody would have fallen in love with it
0:07:43 > 0:07:45when it went under the hammer.
0:07:45 > 0:07:49Two bids on the internet. That'll be fun. Lot 75 in Clent.
0:07:49 > 0:07:51Start me at 90. An opening bid of 90, please.
0:07:51 > 0:07:54A nice looking house. Pardon?
0:07:54 > 0:07:56Well, we've got 110 straight on the phone.
0:07:56 > 0:07:57Thank you, Stewart. 112 and a half, anyone?
0:07:57 > 0:07:59110 I'm bid. 12 and a half.
0:07:59 > 0:08:01The lady's bid here on my left. 115 anywhere?
0:08:01 > 0:08:05After some initial bidding in the room, on the phone, and the internet,
0:08:05 > 0:08:09we rejoin at 145,000.
0:08:09 > 0:08:11I have 145 on the internet.
0:08:11 > 0:08:13146, madam.
0:08:13 > 0:08:15146. Right, I have.
0:08:15 > 0:08:17Now 147, please.
0:08:17 > 0:08:19No? OK, I'm going to call it.
0:08:19 > 0:08:20The first time at 146.
0:08:20 > 0:08:24Are you all done? The lady's bid, in the room.
0:08:24 > 0:08:26Yours, madam. Well done. Thank you very much.
0:08:28 > 0:08:32'Pleased-looking purchasers Anna and husband Tim got the property for
0:08:32 > 0:08:35'146,000.
0:08:35 > 0:08:37'Anna, who works for the Careers Service,
0:08:37 > 0:08:42'met me back at their acquisition to tell me what their plans were.'
0:08:42 > 0:08:45- Anna, lovely to meet you. - Nice to meet you.
0:08:45 > 0:08:46- Congratulations!- Thank you.
0:08:46 > 0:08:50A charming little place, actually. Tell me why you wanted to buy it.
0:08:50 > 0:08:54We are looking for something for our retirement, really.
0:08:54 > 0:08:56So, do you currently have a house?
0:08:56 > 0:08:58We had a house.
0:08:58 > 0:09:00We sold it to the government, because of HS2.
0:09:00 > 0:09:03- Oh, did you?- Oh, yes.- Compulsory purchase of the land?
0:09:03 > 0:09:06It wasn't compulsory but it was purchased by the government, yes.
0:09:06 > 0:09:08Oh, wow! That must have been a bit traumatic.
0:09:08 > 0:09:11- Or did they give you loads of money so you don't care? - Oh, no, we lost loads.
0:09:11 > 0:09:15- Did you?- Yes. Yeah, it took us five and a half years.
0:09:15 > 0:09:17Ultimately, we took the money,
0:09:17 > 0:09:20and we decided to recoup by doing a couple of cottages here.
0:09:20 > 0:09:23Kind of a bit of a shock.
0:09:23 > 0:09:27Projects like HS2, or Crossrail, can benefit commuters and the economy,
0:09:27 > 0:09:32but of course, we should never forget that there is a downside for some.
0:09:32 > 0:09:36Being uprooted is costly emotionally as well as financially,
0:09:36 > 0:09:39but Tim and Anna are regrouping.
0:09:39 > 0:09:41We're thinking about moving to France.
0:09:41 > 0:09:44- OK.- And we wanted to buy somewhere here.
0:09:44 > 0:09:45And we saw the house next door.
0:09:45 > 0:09:49- Oh.- We've offered on it and it's going through.
0:09:49 > 0:09:51Then we saw this was coming up at auction, so we thought, "Well,
0:09:51 > 0:09:55"if we're going to have two cottages and keep them as lets for most of
0:09:55 > 0:09:59"the time, they might as well be beside each other."
0:09:59 > 0:10:01- How funny.- Yeah. So that was that.
0:10:01 > 0:10:02Wow! Had you seen it?
0:10:02 > 0:10:06- I hadn't seen it. He had. - Oh, right, OK.
0:10:06 > 0:10:07SHE LAUGHS
0:10:07 > 0:10:11- So how did that feel?- I got a bit of a shock. I thought there was one fireplace, but there's two.
0:10:11 > 0:10:14- I know. Well, that's a good shock, isn't it?- Er...
0:10:14 > 0:10:17- it could be. Bit more difficult... - Why?- I want to take them down.
0:10:17 > 0:10:20- You want to what?- I want to get rid of the chimneybreast.
0:10:20 > 0:10:21No, you don't, what?
0:10:21 > 0:10:24- Why not?- Why, just to open it up downstairs?
0:10:24 > 0:10:26Yes, huge difference.
0:10:26 > 0:10:29You're looking at, really, five feet.
0:10:29 > 0:10:33You're looking at a lot of space upstairs and you get two double bedrooms.
0:10:33 > 0:10:36Well, as much as I'd be sad to see the period features go,
0:10:36 > 0:10:38Anna has got a point.
0:10:38 > 0:10:40By removing the chimneybreasts on both floors,
0:10:40 > 0:10:45she and Tim would gain extra living space downstairs, and also upstairs,
0:10:45 > 0:10:49as they plan to create a Jack and Jill bathroom with separate access
0:10:49 > 0:10:51from what would be two double bedrooms.
0:10:53 > 0:10:55This will be very costly, though,
0:10:55 > 0:10:58and they've had estimates that would bring the total budget to around
0:10:58 > 0:11:0130,000, but as they are renting out,
0:11:01 > 0:11:04this wouldn't necessarily equate to more income,
0:11:04 > 0:11:07so I was wondering if it's worth the bother.
0:11:10 > 0:11:12But long term it might be worth more.
0:11:12 > 0:11:16Long term, in terms of sale, I think it's probably worth doing, yeah.
0:11:16 > 0:11:19Right, OK. And what's the timescale for all this?
0:11:19 > 0:11:23- Three months.- Right, and the same timescale for next door?
0:11:23 > 0:11:25Next door will be longer because we haven't exchanged yet next door.
0:11:25 > 0:11:28Oh, OK. Because, presumably, it would be a lot cheaper
0:11:28 > 0:11:31- to get somebody doing both. - In to do both, quite.
0:11:31 > 0:11:35And we can use certain things there that we can then put into here,
0:11:35 > 0:11:39like the kitchen, we can move about a bit.
0:11:39 > 0:11:42- All very exciting. - Oh, it is. Yes, it is, actually.
0:11:42 > 0:11:47- And it's exciting because my husband's from this area originally. - OK.- I'm not.
0:11:47 > 0:11:50And it's a lovely area, a very nice area.
0:11:50 > 0:11:52- Which you're going to leave and go to France.- Yeah.
0:11:52 > 0:11:54THEY LAUGH
0:11:54 > 0:11:55Quite. Of course.
0:11:55 > 0:11:57What kind of life are you going to live in France?
0:11:57 > 0:12:00Is it the idyllic rural retired life in France life?
0:12:00 > 0:12:02- I don't know, do something else. - Well, it's all change, then.
0:12:02 > 0:12:05Yeah, and we've got hobbies, odd...
0:12:05 > 0:12:07- Like?- I stuff animals.
0:12:07 > 0:12:08You stuff animals?
0:12:08 > 0:12:11Oh, that will make friends with loads of people watching, yeah!
0:12:11 > 0:12:13- Yeah.- You stuff them when they're dead, presumably.
0:12:13 > 0:12:17Oh, preferably, and not ones that are past their sell-by date!
0:12:17 > 0:12:18What kind of animals do you stuff?
0:12:18 > 0:12:20Squirrels mostly, and things like that, at present.
0:12:20 > 0:12:22You stuff squirrels?
0:12:22 > 0:12:24Well, I'm just a beginner, you see.
0:12:24 > 0:12:26Wow, I wasn't expecting that one, OK.
0:12:26 > 0:12:27- I bet you weren't!- Gosh, right, OK.
0:12:27 > 0:12:30So, are we going to leave a few stuffed things around,
0:12:30 > 0:12:33- just to give it a homely feel? - Oh, yes, I like that, yes,
0:12:33 > 0:12:36I like them to be somewhere where they shouldn't be.
0:12:36 > 0:12:38- Right.- I don't know, along a skirting or something,
0:12:38 > 0:12:41- or the top of a curtain. - Right... A stuffed squirrel?
0:12:41 > 0:12:44- Yeah, looking down.- Oh.
0:12:44 > 0:12:48Well, listen, congratulations and good luck with it, and also your time in France.
0:12:48 > 0:12:51- Thank you very much.- Look forward to seeing how you get on. - THEY LAUGH
0:12:51 > 0:12:53# So if it's up to me
0:12:53 > 0:12:58# Gonna keep you forever... #
0:12:58 > 0:13:04Well, I can't formalde-hide my surprise at the interior decor choices,
0:13:04 > 0:13:07but I've got a feeling not much is going to be preserved here.
0:13:10 > 0:13:14So, will the chimney be here when we return?
0:13:14 > 0:13:17I guess it's all going to come down to the economics.
0:13:17 > 0:13:20You can find out what happens later in the show.
0:13:25 > 0:13:28We're off south now to South Croydon,
0:13:28 > 0:13:32which is one of the areas really benefiting from regeneration.
0:13:32 > 0:13:35It's very popular with first-time buyers and renters.
0:13:38 > 0:13:41The property Lucy is looking at is in a good location near all the
0:13:41 > 0:13:43amenities you could want.
0:13:43 > 0:13:46This area is definitely on the up, and so are the prices.
0:13:49 > 0:13:52Well, if you want to be in the catchment area of your local school,
0:13:52 > 0:13:57well, this is a great location, as the school is literally right there,
0:13:57 > 0:13:59and directly opposite is the property I'm here to see.
0:13:59 > 0:14:01Now, it's a two bedroom mid-terrace
0:14:01 > 0:14:05and it had a guide price of £230,000 plus.
0:14:05 > 0:14:08I wonder if I'll be giving it top marks.
0:14:11 > 0:14:15So, straight into the lounge and oops, straight into the old fuse box there.
0:14:15 > 0:14:16That needs to go.
0:14:16 > 0:14:19It's in a rather awkward position.
0:14:19 > 0:14:22Not a bad space, and actually, for an auction property,
0:14:22 > 0:14:26it doesn't look like it's in really bad condition at all,
0:14:26 > 0:14:28although you would need to replace these windows, I think,
0:14:28 > 0:14:31and maybe just freshen the place up.
0:14:31 > 0:14:33And it is awash with magnolia.
0:14:33 > 0:14:38Now, I'm not down on magnolia because I know lots of people like magnolia,
0:14:38 > 0:14:41but I just think there are so many other tones of paint on the market
0:14:41 > 0:14:45at the moment that may just make the property feel a lot more contemporary.
0:14:45 > 0:14:48So you've got a second reception room. Again, it's a great space,
0:14:48 > 0:14:50it just needs modernising and freshening up.
0:14:50 > 0:14:53You've got a galley kitchen, but that will need to be replaced, too,
0:14:53 > 0:14:56but a lovely bright window, reflecting loads of light in there.
0:14:56 > 0:15:01And as I suspected with this property, downstairs bathroom,
0:15:01 > 0:15:03although it looks to be in quite good condition.
0:15:03 > 0:15:06So, quite a few things to contend with with this property,
0:15:06 > 0:15:08but I'm going to check out the garden.
0:15:11 > 0:15:13Now, out the back you've got your garden.
0:15:13 > 0:15:17Always a bonus, I like to say, but it will need a big old tidy up,
0:15:17 > 0:15:21as you can see. But that is not what I'm out here to show you.
0:15:21 > 0:15:23Come around here a little bit more.
0:15:23 > 0:15:25Have a little look over there.
0:15:27 > 0:15:29That's the railway line.
0:15:29 > 0:15:31It's good, though. The train station's close by,
0:15:31 > 0:15:34which means you can walk there in less than ten minutes,
0:15:34 > 0:15:37but these trains rattling past regularly, well,
0:15:37 > 0:15:42I don't think it's going to be the most peaceful garden to relax in, do you?
0:15:42 > 0:15:45And that was a slow train trundling by.
0:15:45 > 0:15:47They can get a lot quicker than that.
0:15:47 > 0:15:50# Runaway train
0:15:50 > 0:15:52# Running right... #
0:15:52 > 0:15:54With the thick canopy of trees,
0:15:54 > 0:15:56the noise from the trains is slightly deadened,
0:15:56 > 0:16:00but the price to pay is a dark and gloomy garden.
0:16:00 > 0:16:03It's also worth noting that the back area, where the bathroom is,
0:16:03 > 0:16:06needs quite a bit of work.
0:16:06 > 0:16:07Now, back inside...
0:16:08 > 0:16:12So upstairs in this house you've got two really nice size bedrooms,
0:16:12 > 0:16:14which is fantastic.
0:16:14 > 0:16:16And then being up here now, you can see
0:16:16 > 0:16:19there probably would be just enough room to
0:16:19 > 0:16:20bring the bathroom upstairs.
0:16:20 > 0:16:23But now something I'm going to tell you next is because I've had so much
0:16:23 > 0:16:26experience of doing properties like this on Homes Under The Hammer.
0:16:26 > 0:16:28In order to do that,
0:16:28 > 0:16:32you've got to turn these stairs around to create a corridor area,
0:16:32 > 0:16:36so it means reducing the size of the bedroom and it's also quite a costly
0:16:36 > 0:16:38exercise. So I think, first of all,
0:16:38 > 0:16:41speak to your local agents in the area and see what they advise,
0:16:41 > 0:16:44and also it might be worth chatting to the neighbours
0:16:44 > 0:16:46to see if any of them have done that.
0:16:48 > 0:16:50On that note,
0:16:50 > 0:16:53it seemed like a good time to invite along a local estate agent to ask
0:16:53 > 0:16:55his opinion on the subject.
0:16:55 > 0:16:57It's a good-sized property.
0:16:57 > 0:16:58These properties are typical,
0:16:58 > 0:17:01where you have the bathroom at the back of the kitchen.
0:17:01 > 0:17:03There's not really much that can be done with the layout there,
0:17:03 > 0:17:06I don't think, without losing half of the bedroom.
0:17:06 > 0:17:09Keeping that the same, the properties are what they are and they are very good.
0:17:09 > 0:17:11Compared to some auction properties we've seen,
0:17:11 > 0:17:13this isn't actually that bad.
0:17:13 > 0:17:15Money needs to be spent in the right areas, but, in general,
0:17:15 > 0:17:17I think it's a good purchase.
0:17:20 > 0:17:23This house is guided at £230,000 plus,
0:17:23 > 0:17:25but given the required refurbishment,
0:17:25 > 0:17:27how much could be worth?
0:17:27 > 0:17:30This property would sell for approximately £335,000.
0:17:30 > 0:17:33And if it was placed on the rental market?
0:17:33 > 0:17:35This property would rent for approximately
0:17:35 > 0:17:36£1,300 per calendar month.
0:17:38 > 0:17:39No, it's not the quietest spot,
0:17:39 > 0:17:41but it's great for commuter links
0:17:41 > 0:17:44and it shouldn't take too much work to turn this terrace around.
0:17:44 > 0:17:45So who wanted to take it on?
0:17:45 > 0:17:47Let's head to auction and find out.
0:17:50 > 0:17:52Right, two bedroom house in Croydon.
0:17:52 > 0:17:54Who would like to kick off, 240?
0:17:55 > 0:17:57Thank you, 240, standing up, 240.
0:17:57 > 0:18:00245 anywhere?
0:18:00 > 0:18:03After a hesitant start at the auction,
0:18:03 > 0:18:05we return to the bidding at £269,000.
0:18:07 > 0:18:09269.
0:18:09 > 0:18:11271.
0:18:11 > 0:18:13273.
0:18:13 > 0:18:15275.
0:18:15 > 0:18:17275 elsewhere?
0:18:17 > 0:18:21If not, 273, first time,
0:18:21 > 0:18:23second time,
0:18:23 > 0:18:25third and last time. If you're all done...?
0:18:27 > 0:18:28Sold, 273.
0:18:31 > 0:18:34It was Raff and Julie who made that bid on this,
0:18:34 > 0:18:36their first auction property purchase.
0:18:36 > 0:18:38This is a new business venture for them,
0:18:38 > 0:18:42as the couple and their daughters, Alicia and Chloe,
0:18:42 > 0:18:48recently returned to the UK after living in Spain for two years.
0:18:48 > 0:18:49# Goodbye, Barcelona
0:18:49 > 0:18:51# So glad I've been shown ya... #
0:18:51 > 0:18:54Guys, congratulations, I'm so happy for you.
0:18:54 > 0:18:57- Thank you.- Did you expect to win the bid on auction day?
0:18:57 > 0:18:58Not really, no, no.
0:18:58 > 0:19:01- We've been going to auctions for... fourth auction...- Yes.
0:19:01 > 0:19:05..and we've never been successful on anything.
0:19:05 > 0:19:07So I think we were just shocked to win a bid.
0:19:07 > 0:19:10When you were there, what happened when you actually got it
0:19:10 > 0:19:12- and the hammer went down? - Well, I wasn't paying attention.
0:19:12 > 0:19:15I was looking actually down at the catalogue and Raff said to me,
0:19:15 > 0:19:18"Come on, that's us, we've got it." I went, "Oooh!"
0:19:18 > 0:19:19So I was a bit shocked, to be fair.
0:19:19 > 0:19:22You've obviously not been in a desperate hurry to get anything
0:19:22 > 0:19:25if you've just been going along to the odd auction.
0:19:25 > 0:19:26What's the big plan of yours
0:19:26 > 0:19:29and why did you decide now was the right time?
0:19:29 > 0:19:31We've been away for a while, with work,
0:19:31 > 0:19:33we were in Singapore for a while and then in Spain for a while.
0:19:33 > 0:19:36We came back to the UK at the end of last year,
0:19:36 > 0:19:39and neither of us are working at the moment,
0:19:39 > 0:19:45so the plan was to keep busy with something in the property space.
0:19:45 > 0:19:47So, we've been doing our research
0:19:47 > 0:19:50and we're looking for this to be the first of many projects, hopefully.
0:19:50 > 0:19:52So, what were you doing in Spain?
0:19:52 > 0:19:54Not a lot really. Enjoying ourselves.
0:19:54 > 0:19:56Just relaxing, taking two years out.
0:19:56 > 0:19:58- Yeah.- Yeah.- Our daughter was in school there as well.
0:19:58 > 0:20:02So we just kind of chilled out while she was finishing her education.
0:20:02 > 0:20:04So you chilled out for two years?
0:20:04 > 0:20:06- We did.- We did. - How fabulous is that?
0:20:06 > 0:20:08So what were you doing prior to that?
0:20:08 > 0:20:11I was working, well, we were all in Singapore.
0:20:11 > 0:20:13My job took me to Singapore. I was in investment banking.
0:20:13 > 0:20:16So quite a stressful job, I can imagine.
0:20:16 > 0:20:18- Yeah. Glad to be out of it. - Really?- Yeah.
0:20:18 > 0:20:21And is it really nice for you now just to catch your breath
0:20:21 > 0:20:23and do something completely different?
0:20:23 > 0:20:25Yeah, we've taken our time, haven't we?
0:20:25 > 0:20:28As Raff said, we've been to four auctions now
0:20:28 > 0:20:32and we did bid on quite a few properties. This is our first buy.
0:20:32 > 0:20:36It has been nice to have the time, you know, to find something
0:20:36 > 0:20:39that we were really interested in and really wanted to pursue.
0:20:39 > 0:20:43- We wanted to do it right.- Yeah. - You know, we don't have to rush.
0:20:43 > 0:20:46So we've been patient, looking for the right thing, not overbidding,
0:20:46 > 0:20:48just waiting for the right opportunity,
0:20:48 > 0:20:49and I think we may have got it.
0:20:58 > 0:21:01So, after years of globetrotting thanks to Raff's work,
0:21:01 > 0:21:04the family are now putting down roots in England.
0:21:04 > 0:21:07But there is a good reason why Croydon has been selected
0:21:07 > 0:21:10as the location for their first property venture.
0:21:10 > 0:21:12We used to live just across the road.
0:21:12 > 0:21:16- Really?- Across the main road, yeah. Our first property, a little flat.
0:21:16 > 0:21:18So that's perfect. And I always say to people,
0:21:18 > 0:21:21if you know the market round here, you're certainly ahead of the game.
0:21:21 > 0:21:24Although we've been away for a number of years,
0:21:24 > 0:21:27I was born in Croydon, always lived more or less in the area,
0:21:27 > 0:21:29- so we know it pretty well. - Yeah.- Yeah.
0:21:29 > 0:21:32So, what's your plan for this house?
0:21:32 > 0:21:36Good question. We're looking to completely refurbish the property -
0:21:36 > 0:21:39new kitchen, new bathroom, new flooring,
0:21:39 > 0:21:43new windows and just freshen the whole place up.
0:21:43 > 0:21:46- And the exterior as well needs some love and care.- Yeah, yeah.
0:21:46 > 0:21:50Now, one of the first questions I need to ask you about that,
0:21:50 > 0:21:52how you're going to add value to this property,
0:21:52 > 0:21:55- would be the bathroom being downstairs.- Mm-hm.
0:21:55 > 0:21:58Is there any chance you might think about moving it upstairs?
0:21:58 > 0:22:00And, of course, that does mean turning the stairs
0:22:00 > 0:22:03and making some big alterations to the property.
0:22:03 > 0:22:05We don't think so. We've noticed that,
0:22:05 > 0:22:07particularly if you go out in the garden,
0:22:07 > 0:22:08you can see that along the row of the houses,
0:22:08 > 0:22:12most of the bathrooms are in the same position as this one
0:22:12 > 0:22:15so it doesn't really make economical sense to move it upstairs
0:22:15 > 0:22:17and start playing around with stairs, etc.
0:22:17 > 0:22:19So we'll probably leave it where it is.
0:22:19 > 0:22:22But we might have to take it down and rebuild it.
0:22:22 > 0:22:25Now, you've got a train track, right at the end of your garden.
0:22:25 > 0:22:27Is that going to put potential buyers off?
0:22:27 > 0:22:31It's not too noisy, but you can definitely hear it.
0:22:31 > 0:22:33We noticed, along this road in particular,
0:22:33 > 0:22:35and on this side of the road,
0:22:35 > 0:22:37that there's been quite a few houses sold.
0:22:37 > 0:22:39So we don't think that that's a problem.
0:22:39 > 0:22:41To me it just shows there's a train station nearby.
0:22:41 > 0:22:44- Yes.- Because it's a great commuter...- I like the spin on it.
0:22:44 > 0:22:46Yes, there might be a train track there,
0:22:46 > 0:22:50- but it's because there's a station nearby!- But you can get to work! - Yeah, exactly.
0:22:50 > 0:22:52Good work, Raff.
0:22:52 > 0:22:54A positive spin goes a long way in this game.
0:22:54 > 0:22:58And if everything goes to plan, the couple aim to sell on this property.
0:22:58 > 0:23:03So it's £273,000 already committed to this project.
0:23:03 > 0:23:05How much more do they plan to spend?
0:23:07 > 0:23:09Well, erm...
0:23:09 > 0:23:16Original budget was around 17,000-20,000.
0:23:16 > 0:23:18Having re-inspected the bathroom space,
0:23:18 > 0:23:22we probably need to do some more meaningful work there.
0:23:22 > 0:23:26So I guess we're looking at a revised budget of around 25,000.
0:23:26 > 0:23:28OK. And what's your timescale?
0:23:28 > 0:23:32Probably four to five months, ideally,
0:23:32 > 0:23:36depending on the builder we elect to work on the project
0:23:36 > 0:23:39and their availability as well. But I guess four to five months.
0:23:39 > 0:23:42Also, because it's winter, a lot of exterior work needs to be done
0:23:42 > 0:23:44so we have to factor in the weather.
0:23:44 > 0:23:47What do the kids think of Mum and Dad becoming property developers?
0:23:47 > 0:23:49You know, once upon a time, stressed-out banker,
0:23:49 > 0:23:52and now here you are, choosing wallpaper and paint.
0:23:52 > 0:23:55Probably a lot more stressed out in a few weeks' time.
0:23:55 > 0:23:56- I'm not sure...- Yes!
0:23:56 > 0:23:59It's definitely not an easier option, let me tell you that.
0:23:59 > 0:24:02No, exactly. Yeah, they're curious to see what's going on.
0:24:02 > 0:24:04We brought the eldest. She was visiting the other day.
0:24:04 > 0:24:07We brought her to the house. She had all sorts of plans for it as well.
0:24:07 > 0:24:08- So, yeah, they're curious.- Yeah.
0:24:08 > 0:24:10Guys, congratulations.
0:24:10 > 0:24:12I'm really excited for you, good luck with the refurb.
0:24:12 > 0:24:14- Can't wait to see it. - Thank you very much.
0:24:14 > 0:24:17- Thank you. Lovely to meet you both. - Thank you.- Thank you.
0:24:18 > 0:24:22From Spain to the UK, and now it's time for Raff and Julie to embark on
0:24:22 > 0:24:24their new property-developing career.
0:24:24 > 0:24:28Now, it might not be such good weather here in South Croydon,
0:24:28 > 0:24:31but will the sun be shining on their debut project?
0:24:32 > 0:24:35Still to come, I've got some reservations about the additions
0:24:35 > 0:24:37to this property in Birmingham.
0:24:37 > 0:24:39I've seen some extensions,
0:24:39 > 0:24:40and that's not one.
0:24:42 > 0:24:47And back in Croydon, Julie has a familiar tale of woe.
0:24:47 > 0:24:49We actually went over the budget.
0:24:55 > 0:24:59Back now to the lovely hamlet of Holy Cross Green in Worcestershire,
0:24:59 > 0:25:03where I looked around this charming two-bed cottage
0:25:03 > 0:25:04that was guided at 110,000.
0:25:05 > 0:25:09It may have been charming, but inside had its fair share of issues.
0:25:14 > 0:25:18There were signs of damp, woodworm and no central heating.
0:25:18 > 0:25:21But there was still plenty to like about this period property.
0:25:22 > 0:25:25The first thing you notice is that.
0:25:25 > 0:25:26Wow!
0:25:26 > 0:25:28That is amazing.
0:25:28 > 0:25:30What a feature that fireplace is.
0:25:30 > 0:25:33Truly outstanding. Erm...
0:25:33 > 0:25:36It sort of sets the scene, though, for a house that,
0:25:36 > 0:25:40even at first glance, is a bit of a time warp, isn't it?
0:25:41 > 0:25:44You know me, I do love an original feature or two,
0:25:44 > 0:25:46but this place was in desperate need of updating.
0:25:50 > 0:25:53But, come on, that fireplace!
0:25:53 > 0:25:54No? OK...
0:25:54 > 0:25:59And the lot had certainly lit a fire under the bidders on auction day.
0:26:01 > 0:26:04Tim and Anna got it for 146,000, but...
0:26:04 > 0:26:07Oh, yes, there it is, that "but" word again.
0:26:11 > 0:26:13- I hadn't seen it, he had. - Oh, right. OK.
0:26:15 > 0:26:17- So how did that feel? - A little bit of a shock.
0:26:17 > 0:26:20I thought there was one fireplace, but there's two.
0:26:20 > 0:26:23- I know. Well, that's a good shock, isn't it? - Well, I want to take them down.
0:26:23 > 0:26:25- What?!- I want to get rid of the chimneybreast.
0:26:25 > 0:26:29- No, you don't.- You're looking at, really, five feet.
0:26:29 > 0:26:31You're looking at a lot of space upstairs
0:26:31 > 0:26:33and you get two double bedrooms.
0:26:33 > 0:26:36# Rip it up and start again
0:26:37 > 0:26:42# Rip it up and start again... #
0:26:42 > 0:26:45It would be a big job to make this quirky cottage bigger,
0:26:45 > 0:26:49but with a budget of £30,000 and a timescale of two to three months,
0:26:49 > 0:26:51they hoped to be sorted and ready to rent
0:26:51 > 0:26:53before their planned move to France.
0:26:55 > 0:26:56Well, six months later,
0:26:56 > 0:26:59the exterior of the cottage has been smartened up
0:26:59 > 0:27:02with a new door and canopy. Looking good.
0:27:02 > 0:27:05So, has the inside been knocked into shape?
0:27:11 > 0:27:15Yes...but the lovely old fireplace has gone.
0:27:15 > 0:27:17However, this room is now spacious and modern.
0:27:19 > 0:27:21The cupboard in the corner of the living room
0:27:21 > 0:27:25has now been knocked through to create an entrance into the kitchen
0:27:25 > 0:27:29and what was dilapidated and damp is now...
0:27:31 > 0:27:32..wow!
0:27:32 > 0:27:34Removing the pantry has created more space
0:27:34 > 0:27:36in this previously cramped kitchen,
0:27:36 > 0:27:39and I love the stable door, which adds a nice bit of character.
0:27:41 > 0:27:44The chimneybreast in the kitchen is still there, though.
0:27:44 > 0:27:47So why did that escape Anna's demolition plans?
0:27:50 > 0:27:52We kept the fireplace in the kitchen,
0:27:52 > 0:27:54took the old metal bit out,
0:27:54 > 0:27:56but left it there and put a wood beam in.
0:27:56 > 0:28:00We had to maintain the chimney stack because of conservation, and that
0:28:00 > 0:28:04caused us not to even consider removing the two chimneybreasts.
0:28:04 > 0:28:08We just kept the one to hold up the chimney stack.
0:28:09 > 0:28:14Well, I think they've got a nice mixture of modern and original here.
0:28:14 > 0:28:16But has the removal of the chimneybreasts
0:28:16 > 0:28:17opened up the bedrooms?
0:28:23 > 0:28:25Well, that second bedroom is now much larger
0:28:25 > 0:28:29and has direct access to the fresh and modern bathroom.
0:28:29 > 0:28:33We wanted two double bedrooms, so we moved the bedroom out,
0:28:33 > 0:28:36the second bedroom out, and Jack-and-Jilled the bathroom.
0:28:37 > 0:28:41Jack-and-Jill arrangements allow two rooms to access
0:28:41 > 0:28:44the same bathroom, and it's a great solution for small spaces.
0:28:48 > 0:28:51On the other side of the Jack-and-Jill bathroom,
0:28:51 > 0:28:54the very pink bedroom has had a makeover,
0:28:54 > 0:28:57with a feature, exposed-brick wall.
0:28:57 > 0:28:59But what about the less-charming aspects,
0:28:59 > 0:29:01like the lack of damp course downstairs
0:29:01 > 0:29:03and that pesky woodworm problem?
0:29:05 > 0:29:08The floors in this house didn't have a damp-proof course,
0:29:08 > 0:29:11it was just earth, it was carpet onto earth.
0:29:11 > 0:29:14So they had to be dug out, a damp-proof course put in,
0:29:14 > 0:29:16then a floating floor put in.
0:29:16 > 0:29:19That was a huge amount of work, which we did know about.
0:29:19 > 0:29:24What we didn't know about was the damp and also the woodworm,
0:29:24 > 0:29:27which was pretty bad.
0:29:27 > 0:29:29So we had a lot of joists had to be redone.
0:29:30 > 0:29:35So, how has the additional work affected their £30,000 budget?
0:29:37 > 0:29:40I think it's probably nearly £40,000,
0:29:40 > 0:29:43but we still think we've got value for money,
0:29:43 > 0:29:46we still think the builder's done a good job,
0:29:46 > 0:29:48and we're not unhappy with the price.
0:29:48 > 0:29:51And we think we've got a good result.
0:29:51 > 0:29:53I think they have every right to be pleased,
0:29:53 > 0:29:55and given the work undertaken,
0:29:55 > 0:29:59it's not surprising they have overrun their original timescale,
0:29:59 > 0:30:01taking six months instead of three.
0:30:04 > 0:30:07So, with a total investment of £108,000,
0:30:07 > 0:30:09has it all been worthwhile?
0:30:09 > 0:30:12We asked two local estate agents for their opinions,
0:30:12 > 0:30:14starting with the agent who saw it originally.
0:30:15 > 0:30:20What I think works here is the overall feeling of space.
0:30:21 > 0:30:23The fact that you walk through the door,
0:30:23 > 0:30:27you're not encumbered by a staircase right in front of you.
0:30:27 > 0:30:32They've made the best of the property's accommodation.
0:30:32 > 0:30:35The Jack and Jill configuration works extremely well,
0:30:35 > 0:30:37as does the exposed brickwork to the front master bedroom,
0:30:37 > 0:30:40which retains that rustic cottage appeal.
0:30:40 > 0:30:41From a sale and rental perspective,
0:30:41 > 0:30:45I think we'll have a lot of interest once it's placed on the open market.
0:30:46 > 0:30:48So, what kind of figures could this translate to?
0:30:48 > 0:30:52Could they make a profit on their £186,000 investment?
0:30:56 > 0:30:59If this property was coming on the open market for sale,
0:30:59 > 0:31:07I would put a value of between £195,000-£215,000.
0:31:07 > 0:31:10We'd recommend in offering this property at an asking price between
0:31:10 > 0:31:13£215,000-£225,000.
0:31:13 > 0:31:17Taking that top sales figure of 225,000,
0:31:17 > 0:31:22Tim and Anna could make a potential profit of £39,000 before taxes and
0:31:22 > 0:31:26fees are deducted, but what about the rental figures?
0:31:28 > 0:31:32I believe we could achieve between
0:31:32 > 0:31:37£850 per calendar month to £950 per calendar month.
0:31:37 > 0:31:41We would suggest an asking rental of £825 per calendar month.
0:31:41 > 0:31:43So a range of rental figures there,
0:31:43 > 0:31:47but if Tim and Anna were to achieve the top figure of £950,
0:31:47 > 0:31:50that would give them just over a 6% yield.
0:31:50 > 0:31:52So what do they make of those figures?
0:31:55 > 0:31:57I think it was probably what we expected,
0:31:57 > 0:31:59because, at the end of the day,
0:31:59 > 0:32:02we're not too worried about the value,
0:32:02 > 0:32:04because we're going to let them.
0:32:04 > 0:32:07So, is it still off to France for Tim and Anna?
0:32:07 > 0:32:10We're moving absolutely everything we own, lock, stock and barrel
0:32:10 > 0:32:12at the end of next week.
0:32:12 > 0:32:14I'm driving 600 miles in a day, all my own,
0:32:14 > 0:32:18with two cats in the back, squawking.
0:32:18 > 0:32:21So, you can see, we're just taking a measured, gradual,
0:32:21 > 0:32:22sensible approach to this.
0:32:25 > 0:32:29Edgbaston is a popular suburb of central Birmingham
0:32:29 > 0:32:32and is world-renowned, thanks to its famous cricket ground.
0:32:35 > 0:32:36As well as county matches,
0:32:36 > 0:32:40England's one-day internationals and Test matches are also played here.
0:32:43 > 0:32:45And what a lovely day for cricket it is too.
0:32:45 > 0:32:47Not only are we close to the cricket ground,
0:32:47 > 0:32:51we're only two miles away from the centre of Birmingham.
0:32:51 > 0:32:55And on this leafy street is where we find our property, and here it is.
0:32:55 > 0:32:57It's a terraced house,
0:32:57 > 0:33:00it's got four bedrooms and attic space
0:33:00 > 0:33:03and a guide price of £50,000-plus.
0:33:03 > 0:33:05But will I be bowled over?
0:33:05 > 0:33:06Let's find out.
0:33:13 > 0:33:18It's everywhere! There's woodchip wallpaper everywhere.
0:33:18 > 0:33:21There's even textured wallpaper on the ceiling as well.
0:33:21 > 0:33:23Not a massive fan, I've got to say.
0:33:23 > 0:33:26We've got a positive down here, there is central heating.
0:33:26 > 0:33:28A bit further down the hallway,
0:33:28 > 0:33:30we've got the stairs going up to the bedrooms,
0:33:30 > 0:33:33and then into the main part of the downstairs area,
0:33:33 > 0:33:39you've got two good-size reception rooms, nice high ceilings.
0:33:40 > 0:33:43There's a bit of skirting board missing on the back walls there.
0:33:43 > 0:33:45Central heating as well.
0:33:45 > 0:33:48So not too bad so far.
0:33:48 > 0:33:50A bit further down the hallway,
0:33:50 > 0:33:51we have got the kitchen,
0:33:51 > 0:33:55and at the end of the kitchen, we've got the bathroom at the end.
0:33:55 > 0:33:58Now, this part of the house isn't in good condition at all.
0:33:58 > 0:34:03You would have to rip all of this out and start again.
0:34:03 > 0:34:04And...
0:34:07 > 0:34:10..polystyrene tiles, huge fire hazard.
0:34:10 > 0:34:12They would definitely have to come down.
0:34:12 > 0:34:15And outside, well...
0:34:15 > 0:34:17What I thought was outside,
0:34:17 > 0:34:21we've got a bit of a makeshift lean-to,
0:34:21 > 0:34:23but I'll come back to that.
0:34:23 > 0:34:25This part of the house, not very happy with.
0:34:25 > 0:34:27That - not too bad.
0:34:28 > 0:34:30There is plenty of work to do down here.
0:34:30 > 0:34:33Having a bathroom downstairs is not usually desirable,
0:34:33 > 0:34:36and the bathroom itself, it's not good.
0:34:36 > 0:34:39You'd certainly want to move it upstairs,
0:34:39 > 0:34:40but will that be an option?
0:34:42 > 0:34:46So the auction catalogue describes this as a four-bed with attic room,
0:34:46 > 0:34:48but you would be on a sticky wicket
0:34:48 > 0:34:52if you were trying to describe this as a bedroom,
0:34:52 > 0:34:57because there's a few telltale signs that say it was a bathroom.
0:34:57 > 0:34:59Also, the auction catalogue suggested
0:34:59 > 0:35:04this could be converted into a HMO, that would be the route I'd take,
0:35:04 > 0:35:08however there's lots of rules and regulations before you do that -
0:35:08 > 0:35:13planning permission, safety regulations and change of use, but,
0:35:13 > 0:35:16if you want a good return on your money,
0:35:16 > 0:35:18that's definitely the route I would take.
0:35:18 > 0:35:21# That's the thing to do
0:35:23 > 0:35:27# That's the thing to do... #
0:35:27 > 0:35:29A HMO, regular viewers will know,
0:35:29 > 0:35:32stands for house of multiple occupancy,
0:35:32 > 0:35:35and this property is certainly a candidate.
0:35:35 > 0:35:38There's three other decent rooms on this floor,
0:35:38 > 0:35:41plus you've got stairs leading up to an attic room.
0:35:41 > 0:35:45It's in a very poor state, including a nasty bit of damp,
0:35:45 > 0:35:48but once that's fixed up, it could be ideal.
0:35:50 > 0:35:51So that's five bedrooms up here,
0:35:51 > 0:35:54and perhaps you could even convert one or both
0:35:54 > 0:35:58of the reception rooms downstairs into bedrooms.
0:35:58 > 0:36:01The potential yield here could be very good indeed.
0:36:04 > 0:36:06So, I just wanted to pop out the back,
0:36:06 > 0:36:08just to see what we've got in the garden.
0:36:08 > 0:36:10And it's not a bad size.
0:36:10 > 0:36:15It has been left for quite a bit of time, we've got weeds everywhere,
0:36:15 > 0:36:18but it wouldn't take much to get this back to its best.
0:36:18 > 0:36:22You know, a bit of elbow grease, a new fence on both sides,
0:36:22 > 0:36:23just tidy things up out the back.
0:36:23 > 0:36:28You've got a bit of a patio area as well, and on days like today,
0:36:28 > 0:36:30it's a bit of a suntrap.
0:36:30 > 0:36:35I also wanted to look back if I could see where that damp or water
0:36:35 > 0:36:37was coming in that was in the loft.
0:36:37 > 0:36:40There was a bit of a damp area up in the loft.
0:36:40 > 0:36:43I can see there's a little bit of concrete
0:36:43 > 0:36:44just loose on the tiles there,
0:36:44 > 0:36:48so however that water's getting in, get that sorted as soon as possible.
0:36:49 > 0:36:53Now, I've seen some extensions,
0:36:53 > 0:36:54and that's not one.
0:36:54 > 0:36:58That's a lean-to that has just been thrown up, doesn't look very nice,
0:36:58 > 0:37:01and I don't think it does a very good job either.
0:37:01 > 0:37:04So, for me, I'd want to get rid of that.
0:37:04 > 0:37:07Just basically tidy up out the back area
0:37:07 > 0:37:10and I think you'd have a decent back garden.
0:37:10 > 0:37:15There is plenty of work needed here, inside and out,
0:37:15 > 0:37:19but if you get it for anywhere near the guide price of £50,000-plus,
0:37:19 > 0:37:21it could be a great investment.
0:37:21 > 0:37:24We've asked along a local estate agent for his opinion.
0:37:26 > 0:37:29You could certainly turn this into a seven-bedroom letting property.
0:37:29 > 0:37:33To turn this into a seven-bedroom HMO unit,
0:37:33 > 0:37:35you would need to put a new bathroom in it.
0:37:35 > 0:37:37Again, new kitchen, new decorations.
0:37:37 > 0:37:42You'd need to put fire doors in, emergency lighting, smoke alarms.
0:37:42 > 0:37:46You'd probably spend more like £25,000-30,000.
0:37:46 > 0:37:47Well, this is a big outlay
0:37:47 > 0:37:50and there's lots of red tape to contend with,
0:37:50 > 0:37:51so will it be worth it?
0:37:51 > 0:37:55What kind of rental could you expect for a seven-bed HMO?
0:37:56 > 0:37:58A seven-bedroom HMO property
0:37:58 > 0:38:01could generate somewhere in the region of £2,000 per month.
0:38:04 > 0:38:07£2,000 a month is a good income,
0:38:07 > 0:38:09especially if you were to get that property
0:38:09 > 0:38:13for anything near the guide price of £50,000.
0:38:13 > 0:38:16Based on that, and the estate agent's renovation estimate,
0:38:16 > 0:38:21you could be talking about a massive 28% yield,
0:38:21 > 0:38:24but it all hinges on what happens at the auction.
0:38:25 > 0:38:27To turn this into a normal four-bedroom property,
0:38:27 > 0:38:31there would be good demand both for sale and to let,
0:38:31 > 0:38:33but I do think converted into an HMO,
0:38:33 > 0:38:35there would be much stronger demand.
0:38:37 > 0:38:40So, this sounds like a great investment opportunity,
0:38:40 > 0:38:43and was very popular on auction day.
0:38:43 > 0:38:47But unfortunately our cameras missed the action for this particular lot.
0:38:47 > 0:38:50However, I can tell you the £50,000-plus
0:38:50 > 0:38:53guide price was exceeded, and then some,
0:38:53 > 0:38:58with the hammer going down at £155,000.
0:39:00 > 0:39:02The property was bought by childhood friends
0:39:02 > 0:39:06and business partners Jonathan, here on the right, and Harpreet.
0:39:08 > 0:39:12Interestingly, Jonathan appeared on this show way back in 2006,
0:39:12 > 0:39:14not as a buyer, but as an estate agent.
0:39:16 > 0:39:19He now works in finance, but has been part of this
0:39:19 > 0:39:23property-developing team with Harpreet for some time now.
0:39:23 > 0:39:26Until recently, they'd been focusing on London,
0:39:26 > 0:39:27which is where they're from.
0:39:27 > 0:39:30This is their first venture into the Birmingham market.
0:39:30 > 0:39:32- Jonathan, nice to meet you. - Very nice to meet you.
0:39:32 > 0:39:34- Harpreet, nice to meet you too. - Nice to meet you too.
0:39:34 > 0:39:36- Congratulations, chaps.- Thank you.
0:39:36 > 0:39:38Who found this house, then?
0:39:38 > 0:39:40It's a combination of both of us, wasn't it?
0:39:40 > 0:39:42We were looking through the catalogue,
0:39:42 > 0:39:44and we sort of narrowed it down to about three or four...?
0:39:44 > 0:39:46Three or four properties, yeah.
0:39:46 > 0:39:49In the end, this is the one we had the best gut feeling about,
0:39:49 > 0:39:51and then we just kind of went all the way on it.
0:39:51 > 0:39:52It looked like a good choice.
0:39:52 > 0:39:54I mean, we didn't actually see it inside,
0:39:54 > 0:39:57we just kind of came up on a Saturday, saw it from outside,
0:39:57 > 0:39:59got a good feeling about the area,
0:39:59 > 0:40:01had a word with one of the neighbours
0:40:01 > 0:40:04and saw a couple after this and just happened to get lucky
0:40:04 > 0:40:05with this one at the auction.
0:40:05 > 0:40:08What is it about this property that made you think,
0:40:08 > 0:40:09"We can make money from it"?
0:40:09 > 0:40:11Because that's basically what you need to do.
0:40:11 > 0:40:15I think it was in the catalogue, it said seven bedrooms.
0:40:15 > 0:40:18- Seven bedrooms, yeah. - What we've seen is that some...
0:40:18 > 0:40:21We know the price we paid for as a stand-alone house wasn't going to be
0:40:21 > 0:40:24anything special, but I think what we saw in the auction room
0:40:24 > 0:40:26was a lot of people competing for it,
0:40:26 > 0:40:28because obviously the yield's fantastic.
0:40:28 > 0:40:30If you compare it to London,
0:40:30 > 0:40:34if we were to do the work, we worked out it will be 15-16% return.
0:40:34 > 0:40:39- OK.- Whereas in London, 5-6% is hard to do.- It's good, yeah.
0:40:39 > 0:40:43Now, you went slightly over the guide price.
0:40:43 > 0:40:46- When I say slightly, you went a lot over the guide price.- Yeah.
0:40:46 > 0:40:49Why was that and why did you stick it out and pay
0:40:49 > 0:40:52what I consider to be quite a lot of money?
0:40:52 > 0:40:55I don't think the guide prices were realistic for any of the lots.
0:40:55 > 0:40:57- OK.- I don't think anything went for the guide price.
0:40:57 > 0:41:00Most things were going three times the guide price, from what we could see.
0:41:00 > 0:41:05- That's funny, because you two paid three times.- Yeah, we did.
0:41:05 > 0:41:08We had a figure in our head for about 145, didn't we?
0:41:08 > 0:41:11We were always going to go a little bit up that.
0:41:11 > 0:41:13The thing is, coming to Birmingham is a learning curve for us,
0:41:13 > 0:41:17so if we've made something, fine, if we haven't,
0:41:17 > 0:41:18obviously the return is great, so, you know,
0:41:18 > 0:41:22you've got get out of jail free cards with property, it seems.
0:41:22 > 0:41:27# Don't count your chickens before they hatch... #
0:41:27 > 0:41:28These two are confident lads,
0:41:28 > 0:41:31but they didn't view the property before buying and, of course,
0:41:31 > 0:41:34it went for three times over the guide price.
0:41:34 > 0:41:37Alarm bells are ringing for me already.
0:41:37 > 0:41:41Hopefully their plans for the property will ease my fears.
0:41:41 > 0:41:43Tell us what you're going to do with it.
0:41:43 > 0:41:46We're going to turn it into a six-bedroom HMO.
0:41:46 > 0:41:48It's already laid out as it is.
0:41:48 > 0:41:52The reception behind us is going to be opened out into a communal area,
0:41:52 > 0:41:56and we're going to replace the kitchen and bathroom, rewire,
0:41:56 > 0:41:59new radiators, do everything to whatever the regulations stipulate
0:41:59 > 0:42:04and see what we can get for it, in terms of on the open market,
0:42:04 > 0:42:05see what someone will pay for it.
0:42:05 > 0:42:08If we get that, great, if we get what we're looking for, great,
0:42:08 > 0:42:10if we don't, then obviously we'll just rent it.
0:42:10 > 0:42:12How much is that going to cost you, what's your budget?
0:42:13 > 0:42:17- I think we've said, what, around 15,000?- Yeah, about 15, yeah.
0:42:17 > 0:42:20To get everything you'd want done in this house,
0:42:20 > 0:42:23- finished, ready to go? - We've got it priced up, yeah.
0:42:23 > 0:42:25So I know it sounds cheap to a lot of people,
0:42:25 > 0:42:28but we've done so many before with the same guys,
0:42:28 > 0:42:29they do look after us.
0:42:29 > 0:42:33- How long's it going to take, what's your timescale on this turnaround? - Four weeks.
0:42:33 > 0:42:36Four weeks? Is that cracking on, cracking on?
0:42:36 > 0:42:38There's going to be three or four guys in here.
0:42:38 > 0:42:42What we find is you can either drag it out and it takes longer,
0:42:42 > 0:42:44but if you get it done sooner,
0:42:44 > 0:42:46you can move onto the next project quicker.
0:42:46 > 0:42:48So it's what you pay a bit extra for now,
0:42:48 > 0:42:51you kind of make up because you can do more in the same amount of time.
0:42:51 > 0:42:53How are you going to make the difference,
0:42:53 > 0:42:55are you guys going to get your hands dirty and get stuck in,
0:42:55 > 0:42:58- or have you got other people working for you?- No chance!
0:42:58 > 0:42:59You wouldn't want to dirty that shirt.
0:42:59 > 0:43:02- I had to bring the shirt up, by the way.- Yeah, nice one.
0:43:02 > 0:43:05We've got our guys ready to do it,
0:43:05 > 0:43:08so they're going to start literally after today.
0:43:08 > 0:43:09They've got the skip booked.
0:43:09 > 0:43:12It's going to be strip out, probably three or four days strip out,
0:43:12 > 0:43:14then it's probably... The main thing's the electrics,
0:43:14 > 0:43:17the electrician and the wiring,
0:43:17 > 0:43:19but I can't see it being more than three or four weeks.
0:43:19 > 0:43:21- Back to you soon, I think. - Brilliant.
0:43:21 > 0:43:24- Thank you very much. - Good luck, good luck. - Thanks, mate.- Good luck.- Cheers.
0:43:26 > 0:43:28OK, they didn't view the property
0:43:28 > 0:43:31and they paid three times over the guide price.
0:43:31 > 0:43:34However, if they do make this into a HMO,
0:43:34 > 0:43:38I think they could salvage what could have been a bad situation.
0:43:38 > 0:43:4015 grand budget?
0:43:40 > 0:43:43I'm not sure about that. They might have to double that,
0:43:43 > 0:43:46but you can find out how they get on later in the programme.
0:43:50 > 0:43:52I'd always advise taking the careful approach
0:43:52 > 0:43:55- when it comes to getting into property.- That's true, Dion,
0:43:55 > 0:43:57but you sometimes you need to be a bit brave,
0:43:57 > 0:44:01because people can suffer from being too cautious.
0:44:01 > 0:44:05It's about making the right decisions at the right time.
0:44:05 > 0:44:07So, how did our purchasers get on?
0:44:11 > 0:44:14Time to head back to South Croydon now.
0:44:16 > 0:44:18It was in this trendy hotspot
0:44:18 > 0:44:22that Lucy first had a look around this two-bed mid-terrace
0:44:22 > 0:44:25that had a guide price of £230,000 plus.
0:44:27 > 0:44:29Inside, the property was in pretty good shape,
0:44:29 > 0:44:31but in the overgrown back garden,
0:44:31 > 0:44:34the first potential problem signalled its arrival.
0:44:35 > 0:44:37That's the railway line.
0:44:37 > 0:44:39It's good, though. The train station's close by,
0:44:39 > 0:44:42which means you can walk there in less than ten minutes.
0:44:42 > 0:44:45But these trains rattling past regularly, well,
0:44:45 > 0:44:50I don't think it's going to be the most peaceful garden to relax in, do you?
0:44:50 > 0:44:54# Runaway train, never going back... #
0:44:54 > 0:44:57Unless you're an avid trainspotter, this could be a negative.
0:44:57 > 0:45:00But, of course, lots of people live near railway lines
0:45:00 > 0:45:02and get used to the noise.
0:45:02 > 0:45:05Another negative was the downstairs bathroom,
0:45:05 > 0:45:07one of Lucy's pet peeves.
0:45:07 > 0:45:09However, unless you were flush with cash,
0:45:09 > 0:45:12moving it wasn't really a viable option.
0:45:14 > 0:45:17The buyers weren't going to miss the train on this one, though,
0:45:17 > 0:45:23and the auction day was busy, with the property selling for 273,000.
0:45:23 > 0:45:25Sold, 273.
0:45:28 > 0:45:31The successful bidders were married couple
0:45:31 > 0:45:34and first-time property renovators Raff and Julie.
0:45:34 > 0:45:37Having spent the past few years living in Spain,
0:45:37 > 0:45:40they recently moved back to the UK with their two daughters
0:45:40 > 0:45:42and they hoped this property investment
0:45:42 > 0:45:44would be the first of many.
0:45:44 > 0:45:47But before that, they had to sort out the here and now.
0:45:49 > 0:45:51So, what's your plan for this house?
0:45:51 > 0:45:56Good question. We're looking to completely refurbish the property.
0:45:56 > 0:46:01New kitchen, new bathroom, new flooring, new windows,
0:46:01 > 0:46:02and just freshen the whole place up.
0:46:02 > 0:46:06- And the exterior as well needs some love and care.- Yeah, yeah.- Yeah.
0:46:06 > 0:46:08They planned to get in tradespeople to do the work
0:46:08 > 0:46:11and wanted to sell it on once completed.
0:46:11 > 0:46:14They hoped this would not take more than four to five months,
0:46:14 > 0:46:17and under a budget of 25,000.
0:46:18 > 0:46:20Here we are, nearly nine months later,
0:46:20 > 0:46:23and the outside is looking much better
0:46:23 > 0:46:25with new render and a lovely paint job.
0:46:25 > 0:46:28Let's hope the good work continues inside.
0:46:38 > 0:46:42My goodness, what a change to the back of the property.
0:46:42 > 0:46:45The new floors in the rear reception are beautifully finished
0:46:45 > 0:46:50and the neutral decoration is ideal for sales and rental markets.
0:46:50 > 0:46:53As for the kitchen, perhaps Julie can explain
0:46:53 > 0:46:54exactly what they've done.
0:46:57 > 0:47:00We completely refurbed the kitchen.
0:47:00 > 0:47:02We took down the suspended ceiling that we had
0:47:02 > 0:47:06and it really opened it up and made it a lot more bright and airy.
0:47:06 > 0:47:10The bathroom extension is completely new.
0:47:10 > 0:47:12We did a new layout and just retiled everything,
0:47:12 > 0:47:14replastered everything.
0:47:14 > 0:47:18And, yeah, took the door off here, which opened the whole area out
0:47:18 > 0:47:20and made it a lot more spacious and airy.
0:47:24 > 0:47:27It may still be downstairs, but they've really made the most of it,
0:47:27 > 0:47:30creating a lovely bright and fresh bathroom.
0:47:35 > 0:47:38Moving into the front reception room, it's also been refloored,
0:47:38 > 0:47:41replastered and redecorated to a high spec.
0:47:41 > 0:47:45The window's been replaced, as they all have throughout the property.
0:47:48 > 0:47:51Upstairs, the two bedrooms are looking much more appealing,
0:47:51 > 0:47:53again, with a lovely finish.
0:47:56 > 0:48:00Outside, the trains might still be rumbling by, but the garden has been
0:48:00 > 0:48:04given a really good tidy-up and they have had the back of the house
0:48:04 > 0:48:07re-rendered and repainted to match the front.
0:48:08 > 0:48:10Overall, this house is as good as new
0:48:10 > 0:48:13and it's a triumph for their first renovation project.
0:48:15 > 0:48:17The works that we carried out on the property
0:48:17 > 0:48:20were basically from top to bottom.
0:48:20 > 0:48:22So, everything was completely redone -
0:48:22 > 0:48:25plastering, new flooring, new radiators,
0:48:25 > 0:48:28new boiler, kitchen, bathroom, even to the outside,
0:48:28 > 0:48:32where we did the complete re-render of the front of the house.
0:48:32 > 0:48:35At the rear, the garden before was a bit of a jungle,
0:48:35 > 0:48:39and that's been tidied up and new paving stones,
0:48:39 > 0:48:42some new lawn's been laid and some new gravel, a patio space,
0:48:42 > 0:48:45and a little bit of fencing, just to tidy up the whole garden.
0:48:45 > 0:48:48We've also taken down what was a pretty meaty tree
0:48:48 > 0:48:50that was blocking off a lot of sunlight.
0:48:50 > 0:48:54It's a big improvement but there have been numerous
0:48:54 > 0:48:58unforeseen setbacks, including a change of builders doing the work.
0:48:58 > 0:49:02Their original budget was 25,000, so how is it looking now?
0:49:04 > 0:49:07We actually went over the budget and went up to 40,000.
0:49:07 > 0:49:10The delays meant that their timescale changed
0:49:10 > 0:49:13from four to five months to almost nine.
0:49:13 > 0:49:15But despite things not being straightforward,
0:49:15 > 0:49:17I think they now have a smashing house.
0:49:19 > 0:49:23In total then, Raff and Julie have invested £313,000
0:49:23 > 0:49:27on their first project, and with them keen to sell,
0:49:27 > 0:49:30it seems an opportune time to hear the thoughts
0:49:30 > 0:49:32of two local estate agents.
0:49:34 > 0:49:36This property looks absolutely fantastic.
0:49:36 > 0:49:38I remember seeing it the first time round
0:49:38 > 0:49:42and definitely there's massive changes here. It's a really modern,
0:49:42 > 0:49:45really bright and I think it's exactly what a buyer would want.
0:49:45 > 0:49:47They've done really well. They will sell, hopefully,
0:49:47 > 0:49:51to City workers, and they do expect a high-spec finish.
0:49:51 > 0:49:52So the wood flooring, the decor's neutral
0:49:52 > 0:49:56and the bathroom and kitchen are all good facilities.
0:49:56 > 0:49:58The main selling points of this property
0:49:58 > 0:49:59are definitely the kitchen
0:49:59 > 0:50:01and also the garden looks really, really lovely.
0:50:01 > 0:50:04Very nice rooms, great decoration.
0:50:04 > 0:50:06The agents are impressed with the work here,
0:50:06 > 0:50:08but will that translate into profit?
0:50:08 > 0:50:10Let's hear the rental first.
0:50:10 > 0:50:14I would value this property at £1,250 per calendar month.
0:50:14 > 0:50:17This property for rental would achieve approximately
0:50:17 > 0:50:18£1,350 per calendar month.
0:50:18 > 0:50:21If we make an average of £1,300 per calendar month,
0:50:21 > 0:50:25that would mean a yield of just under 5%.
0:50:25 > 0:50:28But it's the sales market Raff and Julie are most interested in.
0:50:30 > 0:50:33I would value this property at £360,000.
0:50:33 > 0:50:36On the sales market, this property would achieve
0:50:36 > 0:50:38approximately £370,000.
0:50:38 > 0:50:42I think they're pretty much in the range of what we thought.
0:50:42 > 0:50:44We didn't expect much higher than that, and, to be honest,
0:50:44 > 0:50:46we didn't expect to go much lower than that,
0:50:46 > 0:50:48so, yeah, pretty much what we thought.
0:50:48 > 0:50:50Yeah, I think that sounds pretty realistic.
0:50:50 > 0:50:54That top valuation would mean a pre-tax profit of 57,000,
0:50:54 > 0:50:57which is pretty good if you ask me.
0:50:57 > 0:51:00But would Raff and Julie be happy to work again together?
0:51:02 > 0:51:04Definitely. Well, I would, anyway.
0:51:04 > 0:51:07I had fun. Great learning experience,
0:51:07 > 0:51:11high learning curve, but definitely work together again.
0:51:11 > 0:51:12Yeah, it can be stressful at times,
0:51:12 > 0:51:14but I think that was due to external factors
0:51:14 > 0:51:15as opposed to working together.
0:51:15 > 0:51:18So, yeah, it will be something that we'll look to do again.
0:51:22 > 0:51:24Back now to Edgbaston,
0:51:24 > 0:51:28a suburb of central Birmingham, not far from the famous cricket ground.
0:51:28 > 0:51:31It was here I saw this four-bed terrace house
0:51:31 > 0:51:35that had a useful-looking attic space.
0:51:35 > 0:51:38Inside, it fell foul of some dated choices
0:51:38 > 0:51:42and I was left stumped by the strange lean-to in the garden.
0:51:42 > 0:51:45But the sheer size of the place had me wondering about
0:51:45 > 0:51:46the rental possibilities.
0:51:46 > 0:51:51The auction catalogue suggested this could be converted into a HMO.
0:51:51 > 0:51:53That would be a route I would take.
0:51:53 > 0:51:57However, there's lots of rules and regulations before you do that -
0:51:57 > 0:52:02planning permission, safety regulations and change of use.
0:52:02 > 0:52:05But if you want a good return on your money,
0:52:05 > 0:52:08that's definitely the route I would take.
0:52:08 > 0:52:11It might take more pen pushing and elbow grease
0:52:11 > 0:52:14to get this property up to its full potential,
0:52:14 > 0:52:18but it was friends and business partners Jonathan and Harpreet
0:52:18 > 0:52:19that were up for the challenge.
0:52:19 > 0:52:25They paid £155,000, which was three times over the guide price.
0:52:25 > 0:52:28But they had plans afoot to recoup that cost.
0:52:29 > 0:52:32We're going to turn it into a six-bedroom HMO.
0:52:32 > 0:52:34It's already laid out as it is.
0:52:34 > 0:52:37The reception behind us is going to be opened out
0:52:37 > 0:52:40into a communal area and we're going to sort of replace
0:52:40 > 0:52:43the kitchen and bathroom, rewire, new radiators,
0:52:43 > 0:52:47do everything to whatever the regulations stipulate.
0:52:47 > 0:52:50The boys have an optimistic budget of 15 grand
0:52:50 > 0:52:53and an even more optimistic timescale of four weeks.
0:52:55 > 0:53:00We're back three months later to find out if it's more OMG than HMO.
0:53:00 > 0:53:01Let's have a look.
0:53:04 > 0:53:07Well, the place is looking bright and fresh.
0:53:07 > 0:53:11That front reception room has been revived with fresh, white walls
0:53:11 > 0:53:13and neutral carpet.
0:53:13 > 0:53:16It's now a generously sized double bedroom.
0:53:17 > 0:53:20The second reception room is now a brilliant communal living space,
0:53:20 > 0:53:25which is looking A-OK thanks to some skirtings and a cracking wood floor.
0:53:27 > 0:53:31And I'm green with envy over the sparkling kitchen
0:53:31 > 0:53:34with snazzy tiles and splashback.
0:53:34 > 0:53:37Time for Jonathan to explain how he did it.
0:53:37 > 0:53:39So, as you can see, compared to before,
0:53:39 > 0:53:40obviously, it was a right state,
0:53:40 > 0:53:43so we've literally stripped everything out.
0:53:43 > 0:53:45We've gone for a neutral finish,
0:53:45 > 0:53:47a little bit of colour with the tiles,
0:53:47 > 0:53:49but everything has been changed.
0:53:49 > 0:53:51So we've had the units changed,
0:53:51 > 0:53:53the boiler has been changed as well,
0:53:53 > 0:53:56everything's been squared off and boxed in.
0:53:56 > 0:53:57We've had a dishwasher added and,
0:53:57 > 0:54:00instead of having a bathroom downstairs,
0:54:00 > 0:54:03we've added a utility area with a washer and dryer.
0:54:07 > 0:54:12By HMO regulations, that downstairs bathroom is now classed as a WC
0:54:12 > 0:54:14as the bath has been removed.
0:54:16 > 0:54:19But the utility room will come in handy when the tenants move in.
0:54:23 > 0:54:25The renovation continues upstairs,
0:54:25 > 0:54:28where there's now three spacious bedrooms,
0:54:28 > 0:54:31all decorated with a tasteful, monochrome colour palette.
0:54:36 > 0:54:41The loft is now looking a lot less damp and a lot more bedroom.
0:54:43 > 0:54:46We've got five double bedrooms spread over three floors.
0:54:46 > 0:54:48What we did with the rear bedroom,
0:54:48 > 0:54:51we effectively lost it and turned it into two bathrooms.
0:54:51 > 0:54:53And I think having more in the way of bathrooms
0:54:53 > 0:54:55will increase its desirability.
0:54:56 > 0:54:59HMO guidelines state that for six or more occupants
0:54:59 > 0:55:03you have to have two bath or shower rooms.
0:55:03 > 0:55:07Jonathan and Harpreet have opted for two shower rooms and three toilets.
0:55:08 > 0:55:10If they wanted that sixth bedroom,
0:55:10 > 0:55:14they would have had to convert the cellar, which seemed a step too far.
0:55:18 > 0:55:22So, we looked at the guidelines, spoke to the council as well.
0:55:22 > 0:55:24So, effectively there were only a few things they were looking for.
0:55:24 > 0:55:27There were sort of like minimum standards with regards to size of
0:55:27 > 0:55:29the shower room, sinks and things like that.
0:55:29 > 0:55:32Obviously, fire doors had to be in place and, you know,
0:55:32 > 0:55:34a fire alarm system.
0:55:34 > 0:55:37So we just effectively looked at the guidelines, you know,
0:55:37 > 0:55:40bought everything to spec, and have done it accordingly.
0:55:40 > 0:55:42So we're just waiting for the licence to come through.
0:55:44 > 0:55:45The HMO guidelines can be tricky,
0:55:45 > 0:55:49but it's important to stick by the book because licences can,
0:55:49 > 0:55:51and often have been, refused.
0:55:51 > 0:55:53But how did it affect the budget?
0:55:55 > 0:55:59We've spent about sort of 21, maybe 22-ish,
0:55:59 > 0:56:02and the only reason being we spent...we had the plastering done.
0:56:02 > 0:56:04I think with the fire alarm system,
0:56:04 > 0:56:07we hadn't budgeted for the full, you know, zoned alarm system.
0:56:07 > 0:56:09But, obviously, that wasn't too much more.
0:56:09 > 0:56:12But, yeah, I think probably five or six grand overspend,
0:56:12 > 0:56:14which isn't the end of the world.
0:56:14 > 0:56:18It's not the end of the world, but it's the end of that dodgy lean-to.
0:56:18 > 0:56:20So let's see if they'll have a lean return
0:56:20 > 0:56:22or they'll make a meaty profit?
0:56:32 > 0:56:35We've asked two local estate agents for their opinions on this property.
0:56:37 > 0:56:40First impressions is condition.
0:56:40 > 0:56:43It's done really well. It's done to a good standard.
0:56:43 > 0:56:46And the main thing is, people can move straight in.
0:56:46 > 0:56:48There's nothing they need to do.
0:56:48 > 0:56:50The standard of finish is right for the area and for this property,
0:56:50 > 0:56:53because the high turnover of tenant you're going to have in here,
0:56:53 > 0:56:57you need to just have something nice and simple you can quickly replace if anything's damaged.
0:56:57 > 0:57:02Maintenance and repair costs always have to be taken into consideration
0:57:02 > 0:57:04with any rental property.
0:57:04 > 0:57:07Wear and tear, as well as mishaps, do occur.
0:57:07 > 0:57:09And while we're on the subject of money,
0:57:09 > 0:57:13what if Jonathan and Harpreet decided to sell this renovated HMO
0:57:13 > 0:57:17as a whole? How would their £177,000 investment fare?
0:57:21 > 0:57:24On the sales market, I would put a price on here
0:57:24 > 0:57:29of anywhere between £180,000-190,000.
0:57:29 > 0:57:30On the sales market,
0:57:30 > 0:57:34this property would achieve around £200,000-220,000.
0:57:34 > 0:57:38That top estimate of £220,000 could give the guys
0:57:38 > 0:57:41a pre-tax profit of 43 grand.
0:57:41 > 0:57:44A top rental value of £400 per month per room
0:57:44 > 0:57:48would mean a yield of 13.5%,
0:57:48 > 0:57:51or an income of £2,000 per month.
0:57:54 > 0:57:562,000's more than what we expected.
0:57:56 > 0:57:58We've got someone interested at 1,700,
0:57:58 > 0:58:00so, obviously, if we can get more, it's a good result.
0:58:00 > 0:58:04The people we've got interested are considering a five-year lease so,
0:58:04 > 0:58:06yeah, that gives us a bit of security of tenure
0:58:06 > 0:58:09for the interim period and, hopefully, if we decide to offload,
0:58:09 > 0:58:12it's quite attractive for the onward purchaser.
0:58:15 > 0:58:17We do love to hear about your renovation stories.
0:58:17 > 0:58:19Sometimes they can be inspiring.
0:58:19 > 0:58:23I agree, Dion. It's such a privilege to hear about your journeys.
0:58:23 > 0:58:26Well, it may be the end of the show, but it's not the end of the journey.
0:58:26 > 0:58:30Make sure you join us next time for more Homes Under The Hammer.
0:58:30 > 0:58:31- Goodbye.- Bye-bye.- Goodbye.